Phase I ESA
Supplier Audits
Environmental Audit Services & Due Diligence
Environmental auditors ensure suppliers follow strict voluntary compliance.Hyde Environmental provided comprehensive environmental audit services for a major manufacturing firm, examining facilities owned by more than twenty-five of their suppliers. These environmental compliance audits were performed to identify whether the firm was incurring liability through its supply chain.
Our audit program targeted commercial treatment, storage, disposal, and recycling facilities (TSDRs) and other suppliers that could pose potential environmental liability.
Reducing Liability via Environmental Compliance Audits
The primary driver for this environmental compliance and due diligence audit was joint and severable liability under CERCLA (Superfund). Under these regulations, all responsible parties may be held wholly or partially liable for the costs of remediating a site.
To reduce this risk, the manufacturing firm utilized Hyde's expertise to limit its supply chain to companies that met specific criteria:
- Financially sound structure
- Manageable environmental risks
- Strict compliance with applicable regulations
- Operational capability to maintain compliance
Our Environmental Due Diligence and Audit Process
This environmental due diligence audit program categorized suppliers based on the nature of their business. We applied our most rigorous audit process to companies providing services associated with waste disposal.
In many ways, this process mirrored the environmental due diligence process used for commercial and industrial property transactions. However, Hyde expanded the scope to include evaluations of the suppliers' financial health, insurance status, and the diversity of their customer bases.
